NEW YORK — "This is nothing new that we're investing in price in adult beverage," she said in a telephone interview. "Grocers have long invested in this to drive traffic."
Wal-Mart's gross margin, the percentage of sales left after the cost of goods sold, was 24.7 percent for the quarter ending July 31. Target's gross margin in the quarter ended Aug. 3 was 31.4 percent.
A year ago, Chief Merchandising Officer Duncan MacNaughton told 500 alcohol industry representatives attending an "adult beverage summit" at Wal-Mart's Bentonville, Ark., headquarters that the company would discount alcohol as part of its strategy to gain share in the category. Wal-Mart has since discounted a range of mainstream and craft beers, doubled the number of alcohol buyers to 12 and cleared more shelf space to promote alcoholic beverages.